Fluctuations in EBIT result in: a. fluctuations in EPS which may be larger or sm

Question

Fluctuations in EBIT result in:
a. fluctuations in EPS which may be larger or smaller asfinancial leverage b. increases smaller fluctuations in EPS, the greater thedegree of financial leverage c. greater fluctuations in EPS, the greater the degree offinancial leverage d. equal fluctuations in EPS, the greater the degree offinancial leverage Fluctuations in EBIT result in:
a. fluctuations in EPS which may be larger or smaller asfinancial leverage b. increases smaller fluctuations in EPS, the greater thedegree of financial leverage c. greater fluctuations in EPS, the greater the degree offinancial leverage d. equal fluctuations in EPS, the greater the degree offinancial leverage

Explanation / Answer

Answer: c. greater fluctuations in EPS, thegreater the degree of financial leverage

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